I 

109TH CONGRESS 

1ST SESSION H. R. 2067

To provide for an improved acquisition system. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 4, 2005

Mr. TOM DAVIS of Virginia (for himself and Mr. HUNTER) introduced the following bill; which was referred to the Committee on Government Reform, 

and in addition to the Committee on Armed Services, for a period to be 

subsequently determined by the Speaker, in each case for consideration 

of such provisions as fall within the jurisdiction of the committee concerned 

A BILL

To provide for an improved acquisition system.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Acquisition System Improvement Act’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows:

Sec. 1. Short title; table of contents. 

TITLE I—ACQUISITION IMPROVEMENTS 

Sec. 101. Government-industry exchange program. 

Sec. 102. Share-in-savings amendments. 
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Sec. 103. Agency acquisition protests. 

Sec. 104. Use of commercially available online services for Federal procurement 

of commercial items. 

Sec. 105. Extension of deadline for report from statutory and regulatory advisory panel. 

Sec. 106. Adjustment of cost accounting standard threshold. 

Sec. 107. Use of Federal supply schedules by State and local governments for 

goods and services for defense against or recovery from terrorism or nuclear, biological, chemical, or radiological attack. 

Sec. 108. Uniform payment standards for contract financing. 

TITLE II—CONTRACT DISPUTE ENHANCEMENT 

Subtitle A—General Provisions 

Sec. 211. Definitions. 

Subtitle B—Establishment of Civilian and Defense Boards of Contract 

Appeals 

Sec. 221. Establishment. 

Sec. 222. Membership. 

Sec. 223. Chairmen. 

Sec. 224. Rulemaking authority. 

Sec. 225. Authorization of appropriations. 

Subtitle C—Functions of Defense and Civilian Boards of Contract Appeals 

Sec. 231. Contract disputes. 

Sec. 232. Enhanced access for small business. 

Sec. 233. Applicability to certain contracts. 

Subtitle D—Transfers and Transition, Savings, and Conforming Provisions 

Sec. 241. Transfer and allocation of appropriations and personnel. 

Sec. 242. Terminations and savings provisions. 

Sec. 243. Contract disputes authority of Boards. 

Sec. 244. References to agency Boards of contract appeals. 

Sec. 245. Conforming amendments. 

Subtitle E—Effective Date; Regulations and Appointment of Chairmen 

Sec. 251. Effective date. 

Sec. 252. Regulations. 

Sec. 253. Appointment of Chairmen of Defense Board and Civilian Board.

1 TITLE I—ACQUISITION 

2 IMPROVEMENTS 

3 SEC. 101. GOVERNMENT-INDUSTRY EXCHANGE PROGRAM. 

4 (a) IN GENERAL.—Subpart B of part III of title 5, 

5 United States Code, is amended by adding at the end the 

6 following: 
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1 ‘‘CHAPTER 38—ACQUISITION 

2 PROFESSIONAL EXCHANGE PROGRAM

‘‘Sec. 

‘‘3801. Definitions. 

‘‘3802. General provisions. 

‘‘3803. Assignment of employees to private sector organizations. 

‘‘3804. Assignment of employees from private sector organizations. 

‘‘3805. Reporting requirement. 

‘‘3806. Regulations.

3 ‘‘§ 3801. Definitions 

4 ‘‘For purposes of this chapter—

5 ‘‘(1) the term ‘agency’—

6 ‘‘(A) subject to subparagraph (B), means 

7 an executive agency; and 

8 ‘‘(B) does not include—

9 ‘‘(i) the General Accounting Office; 

10 ‘‘(ii) an Office of Inspector General of 

11 an establishment or a designated Federal 

12 entity established under the Inspector Gen13 eral Act of 1978; and 

14 ‘‘(iii) the Defense Contract Audit 

15 Agency referred to in section 2313(b) of 

16 title 10; and 

17 ‘‘(2) the term ‘detail’ means—

18 ‘‘(A) the assignment or loan of an em19 ployee of an agency to a private sector organi20 zation without a change of position from the 

21 agency that employs the individual, or 
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1 ‘‘(B) the assignment or loan of an em2 ployee of a private sector organization to an 

3 agency without a change of position from the 

4 private sector organization that employs the in5 dividual, 

6 whichever is appropriate in the context in which 

7 such term is used. 

8 ‘‘§ 3802. General provisions 

9 ‘‘(a) ASSIGNMENT AUTHORITY.—On request from or 

10 with the agreement of a private sector organization, and 

11 with the consent of the employee concerned, the head of 

12 an agency may arrange for the assignment of an employee 

13 of the agency to a private sector organization or an em14 ployee of a private sector organization to the agency. An 

15 eligible employee is an individual who—

16 ‘‘(1) works in the field of Federal acquisition or 

17 acquisition management; 

18 ‘‘(2) is considered an exceptional performer by 

19 the individual’s current employer; and 

20 ‘‘(3) is expected to assume increased acquisition 

21 management responsibilities in the future. 

22 An employee of an agency shall be eligible to participate 

23 in this program only if the employee is employed at the 

24 GS–11 level or above (or equivalent) and is serving under 
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1 a career or career-conditional appointment or an appoint2 ment of equivalent tenure in the excepted service. 

3 ‘‘(b) AGREEMENTS.—Each agency that exercises its 

4 authority under this chapter shall provide for a written 

5 agreement between the agency and the employee con6 cerned regarding the terms and conditions of the employ7 ee’s assignment. In the case of an employee of the agency, 

8 the agreement shall—

9 ‘‘(1) require the employee to serve in the civil 

10 service, upon completion of the assignment, for a pe11 riod equal to the length of the assignment; and 

12 ‘‘(2) provide that, in the event the employee 

13 fails to carry out the agreement (except for good and 

14 sufficient reason, as determined by the head of the 

15 agency from which assigned) the employee shall be 

16 liable to the United States for payment of all ex17 penses of the assignment. 

18 An amount under paragraph (2) shall be treated as a debt 

19 due the United States. 

20 ‘‘(c) TERMINATION.—Assignments may be termi21 nated by the agency or private sector organization con22 cerned for any reason at any time. 

23 ‘‘(d) DURATION.—Assignments under this chapter 

24 shall be for a period of between 6 months and 1 year, 

25 and may be extended in 3-month increments for a total 
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1 of not more than 1 additional year, except that no assign2 ment under this chapter may commence after the end of 

3 the 5-year period beginning on the date of the enactment 

4 of this chapter. 

5 ‘‘(e) ASSISTANCE.—The Administrator for Federal 

6 Procurement Policy, by agreement with the Office of Per7 sonnel Management, may assist in the administration of 

8 this chapter, including by maintaining lists of potential 

9 candidates for assignment under this chapter, establishing 

10 mentoring relationships for the benefit of individuals who 

11 are given assignments under this chapter, and publicizing 

12 the program. 

13 ‘‘(f) CONSIDERATIONS.—In exercising any authority 

14 under this chapter, an agency shall take into consider15 ation—

16 ‘‘(1) the need to ensure that small business con17 cerns are appropriately represented with respect to 

18 the assignments described in sections 3803 and 

19 3804, respectively; and 

20 ‘‘(2) how assignments described in section 3803 

21 might best be used to help meet the needs of the 

22 agency for the training of employees in acquisition 

23 management. 
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1 ‘‘§ 3803. Assignment of employees to private sector or2 ganizations 

3 ‘‘(a) IN GENERAL.—An employee of an agency as4 signed to a private sector organization under this chapter 

5 is deemed, during the period of the assignment, to be on 

6 detail to a regular work assignment in his agency. 

7 ‘‘(b) COORDINATION WITH CHAPTER 81.—Notwith8 standing any other provision of law, an employee of an 

9 agency assigned to a private sector organization under this 

10 chapter is entitled to retain coverage, rights, and benefits 

11 under subchapter I of chapter 81, and employment during 

12 the assignment is deemed employment by the United 

13 States, except that, if the employee or the employee’s de14 pendents receive from the private sector organization any 

15 payment under an insurance policy for which the premium 

16 is wholly paid by the private sector organization, or other 

17 benefit of any kind on account of the same injury or death, 

18 then, the amount of such payment or benefit shall be cred19 ited against any compensation otherwise payable under 

20 subchapter I of chapter 81. 

21 ‘‘(c) REIMBURSEMENTS.—The assignment of an em22 ployee to a private sector organization under this chapter 

23 may be made with or without reimbursement by the pri24 vate sector organization for the travel and transportation 

25 expenses to or from the place of assignment, subject to 

26 the same terms and conditions as apply with respect to 
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1 an employee of a Federal agency or a State or local gov2 ernment under section 3375, and for the pay, or a part 

3 thereof, of the employee during assignment. Any reim4 bursements shall be credited to the appropriation of the 

5 agency used for paying the travel and transportation ex6 penses or pay. 

7 ‘‘(d) TORT LIABILITY; SUPERVISION.—The Federal 

8 Tort Claims Act and any other Federal tort liability stat9 ute apply to an employee of an agency assigned to a pri10 vate sector organization under this chapter. The super11 vision of the duties of an employee of an agency so as12 signed to a private sector organization may be governed 

13 by an agreement between the agency and the organization. 

14 ‘‘(e) SMALL BUSINESS CONCERNS.—

15 ‘‘(1) IN GENERAL.—The head of each agency 

16 shall take such actions as may be necessary to en17 sure that, of the assignments made under this chap18 ter from such agency to private sector organizations 

19 in each year, at least 20 percent are to small busi20 ness concerns. 

21 ‘‘(2) DEFINITIONS.—For purposes of this sub22 section—

23 ‘‘(A) the term ‘small business concern’ 

24 means a business concern that satisfies the 

25 definitions and standards specified by the Ad-
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1 ministrator of the Small Business Administra2 tion under section 3(a)(2) of the Small Busi3 ness Act (as from time to time amended by the 

4 Administrator); 

5 ‘‘(B) the term ‘year’ refers to the 12-

6 month period beginning on the date of the en7 actment of this chapter, and each succeeding 

8 12-month period in which any assignments 

9 under this chapter may be made; and 

10 ‘‘(C) the assignments ‘made’ in a year are 

11 those commencing in such year. 

12 ‘‘(3) REPORTING REQUIREMENT.—An agency 

13 which fails to comply with paragraph (1) in a year 

14 shall, within 90 days after the end of such year, sub15 mit a report to the Committees on Government Re16 form and Small Business of the House of Represent17 atives and the Committees on Homeland Security 

18 and Governmental Affairs and Small Business of the 

19 Senate. The report shall include—

20 ‘‘(A) the total number of assignments 

21 made under this chapter from such agency to 

22 private sector organizations in the year; 

23 ‘‘(B) of that total number, the number 

24 (and percentage) made to small business con25 cerns; and 
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1 ‘‘(C) the reasons for the agency’s non2 compliance with paragraph (1). 

3 ‘‘(4) EXCLUSION.—This subsection shall not 

4 apply to an agency in any year in which it makes 

5 fewer than 5 assignments under this chapter to pri6 vate sector organizations. 

7 ‘‘§ 3804. Assignment of employees from private sector 

8 organizations 

9 ‘‘(a) IN GENERAL.—An employee of a private sector 

10 organization assigned to an agency under this chapter is 

11 deemed, during the period of the assignment, to be on de12 tail to such agency. 

13 ‘‘(b) TERMS AND CONDITIONS.—An employee of a 

14 private sector organization assigned to an agency under 

15 this chapter—

16 ‘‘(1) may continue to receive pay and benefits 

17 from the private sector organization from which he 

18 is assigned; 

19 ‘‘(2) is deemed, notwithstanding subsection (a), 

20 to be an employee of the agency for the purposes 

21 of—

22 ‘‘(A) chapter 73; 

23 ‘‘(B) sections 201, 203, 205, 207, 208, 

24 209, 603, 606, 607, 643, 654, 1905, and 1913 

25 of title 18; 
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1 ‘‘(C) sections 1343, 1344, and 1349(b) of 

2 title 31; 

3 ‘‘(D) the Federal Tort Claims Act and any 

4 other Federal tort liability statute; 

5 ‘‘(E) the Ethics in Government Act of 

6 1978; 

7 ‘‘(F) section 1043 of the Internal Revenue 

8 Code of 1986; and 

9 ‘‘(G) section 27 of the Office of Federal 

10 Procurement Policy Act; 

11 ‘‘(3) may not have access to any trade secrets 

12 or to any other nonpublic information which is of 

13 commercial value to the private sector organization 

14 from which he is assigned; and 

15 ‘‘(4) is subject to such regulations as the Presi16 dent may prescribe. 

17 The supervision of an employee of a private sector organi18 zation assigned to an agency under this chapter may be 

19 governed by agreement between the agency and the private 

20 sector organization concerned. Such an assignment may 

21 be made with or without reimbursement by the agency for 

22 the pay, or a part thereof, of the employee during the pe23 riod of assignment, or for any contribution of the private 

24 sector organization to employee benefit systems. 
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1 ‘‘(c) COORDINATION WITH CHAPTER 81.—An em2 ployee of a private sector organization assigned to an 

3 agency under this chapter who suffers disability or dies 

4 as a result of personal injury sustained while performing 

5 duties during the assignment shall be treated, for the pur6 pose of subchapter I of chapter 81, as an employee as de7 fined by section 8101 who had sustained the injury in the 

8 performance of duty, except that, if the employee or the 

9 employee’s dependents receive from the private sector or10 ganization any payment under an insurance policy for 

11 which the premium is wholly paid by the private sector 

12 organization, or other benefit of any kind on account of 

13 the same injury or death, then, the amount of such pay14 ment or benefit shall be credited against any compensation 

15 otherwise payable under subchapter I of chapter 81. 

16 ‘‘(d) PROHIBITION AGAINST CHARGING CERTAIN

17 COSTS TO THE FEDERAL GOVERNMENT.—A private sec18 tor organization may not charge the Federal Government, 

19 as direct or indirect costs under a Federal contract, the 

20 costs of pay or benefits paid by the organization to an 

21 employee assigned to an agency under this chapter for the 

22 period of the assignment. 

23 ‘‘§ 3805. Reporting requirement 

24 ‘‘(a) IN GENERAL.—The Office of Personnel Manage25 ment shall, not later than April 30 and October 31 of each 
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1 year, prepare and submit to the Committee on Govern2 ment Reform of the House of Representatives and the 

3 Committee on Homeland Security and Governmental Af4 fairs of the Senate a semiannual report summarizing the 

5 operation of this chapter during the immediately preceding 

6 6-month period ending on March 31 and September 30, 

7 respectively. 

8 ‘‘(b) CONTENT.—Each report shall include, with re9 spect to the 6-month period to which such report relates—

10 ‘‘(1) the total number of individuals assigned 

11 to, and the total number of individuals assigned 

12 from, each agency during such period; 

13 ‘‘(2) a brief description of each assignment in14 cluded under paragraph (1), including—

15 ‘‘(A) the name of the assigned individual, 

16 as well as the private sector organization and 

17 the agency (including the specific bureau or 

18 other agency component) to or from which such 

19 individual was assigned; 

20 ‘‘(B) the respective positions to and from 

21 which the individual was assigned, including the 

22 duties and responsibilities and the pay grade or 

23 level associated with each; and 

24 ‘‘(C) the duration and objectives of the in25 dividual’s assignment; and 
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1 ‘‘(3) such other information as the Office con2 siders appropriate. 

3 ‘‘(c) PUBLICATION.—A copy of each report submitted 

4 under subsection (a)—

5 ‘‘(1) shall be published in the Federal Register; 

6 and 

7 ‘‘(2) shall be made publicly available on the 

8 Internet. 

9 ‘‘(d) AGENCY COOPERATION.—On request of the Of10 fice, agencies shall furnish such information and reports 

11 as the Office may require in order to carry out this sec12 tion. 

13 ‘‘§ 3806. Regulations 

14 ‘‘The Director of the Office of Personnel Manage15 ment shall prescribe regulations for the administration of 

16 this chapter.’’. 

17 (b) REPORT.—Not later than 4 years after the date 

18 of the enactment of this Act, the General Accounting Of19 fice shall prepare and submit to the Committee on Govern20 ment Reform of the House of Representatives and the 

21 Committee on Homeland Security and Governmental Af22 fairs of the Senate a report on the operation of chapter 

23 38 of title 5, United States Code (as added by this sec24 tion). Such report shall include—
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1 (1) an evaluation of the effectiveness of the pro2 gram established by such chapter; and 

3 (2) a recommendation as to whether such pro4 gram should be continued (with or without modifica5 tion) or allowed to lapse. 

6 (c) CLERICAL AMENDMENT.—The table of chapters 

7 at the beginning of part III of title 5, United States Code, 

8 is amended by inserting after the item relating to chapter 

9 37 the following:

‘‘38. Acquisition Professional Exchange Program ................ 3801’’.

10 (d) COORDINATION WITH ACQUISITION WORKFORCE

11 PROVISIONS OF OFFICE OF FEDERAL PROCUREMENT

12 POLICY ACT.—Section 37 of the Office of Federal Pro13 curement Policy Act (41 U.S.C. 433) is amended by add14 ing at the end the following new subsection: 

15 ‘‘(i) AUTHORITY TO DETAIL EMPLOYEES TO NON16 FEDERAL EMPLOYERS.—(1) In carrying out the provi17 sions of this section, the Administrator, by agreement with 

18 the Director of the Office of Personnel Management, may 

19 provide for a program under which a Federal employee 

20 may be detailed to a non-Federal employer. The Adminis21 trator, by agreement with the Director of the Office of 

22 Personnel Management, shall prescribe regulations for 

23 such program, including the conditions for service and du24 ties as the Administrator considers necessary. 
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1 ‘‘(2) An assignment described in section 3803 of title 

2 5, United States Code, may not be made unless a program 

3 under paragraph (1) is established, and the assignment 

4 is made in accordance with the requirements of such pro5 gram.’’. 

6 (e) ETHICS PROVISIONS.—

7 (1) ONE-YEAR RESTRICTION ON CERTAIN COM8 MUNICATIONS.—Section 207(c)(2)(A)(v) of title 18, 

9 United States Code, is amended by inserting ‘‘or 

10 38’’ after ‘‘chapter 37’’. 

11 (2) DISCLOSURE OF CONFIDENTIAL INFORMA12 TION.—Section 1905 of title 18, United States Code, 

13 is amended by inserting ‘‘or 38’’ after ‘‘chapter 37’’. 

14 (3) CONTRACT ADVICE.—Section 207(l) of title 

15 18, United States Code, is amended—

16 (A) in the subsection heading, by striking 

17 ‘‘Details.—’’ and inserting ‘‘Detailees.—’’; and 

18 (B) by inserting ‘‘or 38’’ after ‘‘chapter 

19 37’’. 

20 (4) RESTRICTION ON DISCLOSURE OF PRO21 CUREMENT INFORMATION.—Section 27 of the Office 

22 of Federal Procurement Policy Act (41 U.S.C. 423) 

23 is amended in the last sentence of subsection (a)(1) 

24 by inserting ‘‘or 38’’ after ‘‘chapter 37’’. 

25 (f) TECHNICAL AND CONFORMING AMENDMENTS.—
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1 (1) AMENDMENTS TO TITLE 5, UNITED STATES

2 CODE.—Title 5, United States Code, is amended—

3 (A) in section 3111(d), by inserting ‘‘or 

4 38’’ after ‘‘chapter 37’’; and 

5 (B) in section 7353(b)(4), by inserting ‘‘or 

6 38’’ after ‘‘chapter 37’’. 

7 (2) AMENDMENT TO TITLE 18, UNITED STATES

8 CODE.—Section 209(g) of title 18, United States 

9 Code, is amended—

10 (A) in paragraph (1), by inserting ‘‘or 38’’ 

11 after ‘‘chapter 37’’; and 

12 (B) by amending paragraph (2) to read as 

13 follows: 

14 ‘‘(2) For purposes of this subsection, the term ‘agen15 cy’—

16 ‘‘(A) with respect to assignments under chapter 

17 37 of title 5, means an agency (as defined in section 

18 3701 of title 5) and the Office of the Chief Tech19 nology Officer of the District of Columbia; and 

20 ‘‘(B) with respect to assignments under chapter 

21 38 of title 5, means an agency (as defined by section 

22 3801 of title 5).’’. 

23 (3) ELIGIBILITY FOR THRIFT SAVINGS PLAN.—

24 Section 125(c)(1)(D) of Public Law 100–238 (101 
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1 Stat. 1757; 5 U.S.C. 8432 note) is amended by in2 serting ‘‘or 38’’ after ‘‘chapter 37’’. 

3 SEC. 102. SHARE-IN-SAVINGS AMENDMENTS. 

4 (a) DEFENSE CONTRACTS.—Section 2332 of title 10, 

5 United States Code, is amended—

6 (1) in subsection (b)(3)(B), by striking ‘‘in each 

7 of fiscal years 2003, 2004, and 2005’’ and inserting 

8 ‘‘in the fiscal year’’; and 

9 (2) by striking subsection (d). 

10 (b) OTHER CONTRACTS.—Section 317 of the Federal 

11 Property and Administrative Services Act of 1949 (41 

12 U.S.C. 266a) is amended—

13 (1) in subsection (b)(3)(B), by striking ‘‘in each 

14 of fiscal years 2003, 2004, and 2005’’ and inserting 

15 ‘‘in the fiscal year’’; and 

16 (2) by striking subsection (d). 

17 (c) TECHNICAL CORRECTION AMENDMENT.—Section 

18 317 of such Act (41 U.S.C. 266a) is amended in sub19 section (b)(3)(B) by striking ‘‘chapter’’ and inserting 

20 ‘‘title’’. 

21 SEC. 103. AGENCY ACQUISITION PROTESTS. 

22 (a) DEFENSE CONTRACTS.—(1) Chapter 137 of title 

23 10, United States Code, is amended by inserting after sec24 tion 2305a the following new section: 
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1 ‘‘§ 2305b. Protests 

2 ‘‘(a) IN GENERAL.—An interested party may protest 

3 an acquisition of supplies or services by an agency based 

4 on an alleged violation of an acquisition law or regulation, 

5 and a decision regarding such alleged violation shall be 

6 made by the agency in accordance with this section. 

7 ‘‘(b) RESTRICTION ON CONTRACT AWARD PEND8 ING.—(1) Except as provided in paragraph (2), a contract 

9 may not be awarded by an agency after a protest con10 cerning the acquisition has been submitted under this sec11 tion and while the protest is pending. 

12 ‘‘(2) The head of the acquisition activity responsible 

13 for the award of the contract may authorize the award 

14 of a contract, notwithstanding a pending protest under 

15 this section, upon making a written finding that urgent 

16 and compelling circumstances do not allow for waiting for 

17 a decision on the protest. 

18 ‘‘(c) RESTRICTION ON CONTRACT PERFORMANCE

19 PENDING DECISION.—(1) Except as provided in para20 graph (2), performance of a contract may not be author21 ized (and performance of the contract shall cease if per22 formance has already begun) in any case in which a pro23 test of the contract award is submitted under this section 

24 before the later of—

25 ‘‘(A) the date that is 10 days after the date of 

26 contract award; or 
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1 ‘‘(B) the date that is five days after an agency 

2 debriefing date offered to an unsuccessful offeror for 

3 any debriefing that is requested and, when re4 quested, is required, under section 2305(b)(5) of 

5 this title. 

6 ‘‘(2) The head of the acquisition activity responsible 

7 for the award of a contract may authorize performance 

8 of the contract notwithstanding a pending protest under 

9 this section upon making a written finding that urgent 

10 and compelling circumstances do not allow for waiting for 

11 a decision on the protest. 

12 ‘‘(d) DEADLINE FOR DECISION.—The head of an 

13 agency shall issue a decision on a protest under this sec14 tion not later than the date that is 20 working days after 

15 the date on which the protest is submitted to such head 

16 of an agency. 

17 ‘‘(e) JUDICIAL REVIEW.—A decision on a protest 

18 under this section is not subject to judicial review. 

19 ‘‘(f) CONSTRUCTION.—Nothing in this section shall 

20 affect the right of an interested party to file a protest with 

21 the Comptroller General under subchapter V of chapter 

22 35 of title 31. An interested party who has filed a protest 

23 under this section with respect to an acquisition may not 

24 file an action with respect to that acquisition in the United 
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1 States Court of Federal Claims while the protest is pend2 ing. 

3 ‘‘(g) DEFINITIONS.—In this section, the terms ‘pro4 test’ and ‘interested party’ have the meanings given such 

5 terms in section 3551 of title 31.’’. 

6 (2) The table of sections at the beginning of such 

7 chapter is amended by inserting after the item relating 

8 to section 2305a the following new item:

‘‘2305b. Protests.’’.

9 (b) OTHER AGENCIES.—Title III of the Federal 

10 Property and Administrative Services Act of 1949 is 

11 amended by inserting after section 303M (41 U.S.C. 

12 253m) the following new section: 

13 ‘‘SEC. 303N. PROTESTS. 

14 ‘‘(a) IN GENERAL.—An interested party may protest 

15 an acquisition of supplies or services by an executive agen16 cy based on an alleged violation of an acquisition law or 

17 regulation, and a decision regarding such alleged violation 

18 shall be made by the agency in accordance with this sec19 tion. 

20 ‘‘(b) RESTRICTION ON CONTRACT AWARD PENDING

21 DECISION.—(1) Except as provided in paragraph (2), a 

22 contract may not be awarded by an agency after a protest 

23 concerning the acquisition has been submitted under this 

24 section and while the protest is pending. 
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1 ‘‘(2) The head of the acquisition activity responsible 

2 for the award of a contract may authorize the award of 

3 the contract, notwithstanding a pending protest under this 

4 section, upon making a written finding that urgent and 

5 compelling circumstances do not allow for waiting for a 

6 decision on the protest. 

7 ‘‘(c) RESTRICTION ON CONTRACT PERFORMANCE

8 PENDING DECISION.—(1) Except as provided in para9 graph (2), performance of a contract may not be author10 ized (and performance of the contract shall cease if per11 formance has already begun) in any case in which a pro12 test of the contract award is submitted under this section 

13 before the later of—

14 ‘‘(A) the date that is 10 days after the date of 

15 contract award; or 

16 ‘‘(B) the date that is five days after an agency 

17 debriefing date offered to an unsuccessful offeror for 

18 any debriefing that is requested and, when re19 quested, is required, under section 303B(e) of this 

20 title. 

21 ‘‘(2) The head of the acquisition activity responsible 

22 for the award of a contract may authorize performance 

23 of the contract notwithstanding a pending protest under 

24 this section upon making a written finding that urgent 
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1 and compelling circumstances do not allow for waiting for 

2 a decision on the protest. 

3 ‘‘(d) DEADLINE FOR DECISION.—The head of an ex4 ecutive agency shall issue a decision on a protest under 

5 this section not later than the date that is 20 working 

6 days after the date on which the protest is submitted to 

7 the executive agency. 

8 ‘‘(e) JUDICIAL REVIEW.—A decision on a protest 

9 under this section shall not be subject to judicial review. 

10 ‘‘(f) CONSTRUCTION.—Nothing in this section shall 

11 affect the right of an interested party to file a protest with 

12 the Comptroller General under subchapter V of chapter 

13 35 of title 31, United States Code. An interested party 

14 who has filed a protest under this section with respect to 

15 an acquisition may not file an action with respect to that 

16 acquisition in the United States Court of Federal Claims 

17 while the protest is pending. 

18 ‘‘(g) DEFINITIONS.—In this section, the terms ‘pro19 test’ and ‘interested party’ have the meanings given such 

20 terms in section 3551 of title 31, United States Code.’’. 

21 (c) CONFORMING AMENDMENT.—Section 3553(d)(4) 

22 of title 31, United States Code, is amended—

23 (1) in subparagraph (A), by striking ‘‘or’’ at 

24 the end; 
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1 (2) by striking the period at the end of sub2 paragraph (B) and inserting ‘‘; or’’; and 

3 (3) by adding at the end the following new sub4 paragraph: 

5 ‘‘(C) in the case of a protest of the same matter 

6 regarding such contract that is submitted under sec7 tion 2305b of title 10 or section 303N of the Fed8 eral Property and Administrative Services Act of 

9 1949, the date that is 5 days after the date on 

10 which a decision on that protest is issued.’’. 

11 SEC. 104. USE OF COMMERCIALLY AVAILABLE ONLINE 

12 SERVICES FOR FEDERAL PROCUREMENT OF 

13 COMMERCIAL ITEMS. 

14 (a) AMENDMENT TO THE FEDERAL ACQUISITION

15 REGULATION.—Not later than 180 days after the date of 

16 the enactment of this Act, the Federal Acquisition Regula17 tion shall be revised to include provisions that require the 

18 head of an executive agency, to the maximum extent prac19 ticable, to use commercially available online procurement 

20 services to purchase commercial items, including those 

21 procurement services that allow the agency to conduct re22 verse auctions. 

23 (b) REPORT.—Not later than one year after the revi24 sions to the Federal Acquisition Regulation are issued 

25 pursuant to subsection (a), the Administrator for Federal 
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1 Procurement Policy shall submit to the Committees on 

2 Homeland Security and Governmental Affairs and on 

3 Armed Services of the Senate and the Committees on Gov4 ernment Reform and on Armed Services of the House of 

5 Representatives a report on the use of commercially avail6 able online procurement services. The report shall in7 clude—

8 (1) a list of the executive agencies that have 

9 used commercially available online procurement serv10 ices, and the number of times each has so used such 

11 services; 

12 (2) a list of the types of commercially available 

13 online procurement services used by each executive 

14 agency and the dollar value of the procurements con15 ducted through each type of commercially available 

16 online procurement service; and 

17 (3) the Administrator’s recommendations for 

18 further encouraging the use of commercially avail19 able online procurement services, particularly those 

20 that afford the Federal Government the opportunity 

21 to conduct reverse auctions. 

22 (c) DEFINITIONS.—In this section: 

23 (1) The term ‘‘commercially available online 

24 procurement services’’, with respect to procurement 

25 by executive agencies, includes reverse auctions and 
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1 other services accessible on the Internet that allow 

2 executive agencies to purchase commercial items 

3 from electronic catalogs and offerors to bid for deliv4 ery orders of such items. 

5 (2) The term ‘‘reverse auction’’, with respect to 

6 procurement by executive agencies, means a method 

7 of soliciting offers on the Internet for commercial 

8 items, not including construction-related services, in 

9 which— 

10 (A) firms compete against each other on 

11 the Internet in real time and in an open and 

12 interactive environment; and 

13 (B) each firm’s identity and pricing are 

14 safeguarded. 

15 (3) The term ‘‘Federal Acquisition Regulation’’ 

16 means the single Government-wide procurement reg17 ulation issued in accordance with sections 6 and 25 

18 of the Office of Federal Procurement Policy Act (41 

19 U.S.C. 405 and 421). 

20 (4) The terms ‘‘executive agency’’, ‘‘commercial 

21 item’’, and ‘‘procurement’’ have the meanings pro22 vided those terms in section 4 of the Office of Fed23 eral Procurement Policy Act (41 U.S.C. 403 et 

24 seq.). 
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1 SEC. 105. EXTENSION OF DEADLINE FOR REPORT FROM 

2 STATUTORY AND REGULATORY ADVISORY 

3 PANEL. 

4 Subsection (d) of section 1423 of the Services Acqui5 sition Reform Act of 2003 (Public Law 108–136; 41 

6 U.S.C. 405 note) is amended by striking ‘‘one year’’ and 

7 inserting ‘‘two years’’. 

8 SEC. 106. ADJUSTMENT OF COST ACCOUNTING STANDARD 

9 THRESHOLD. 

10 Section 26(f)(2)(A) of the Office of Federal Procure11 ment Policy Act (41 U.S.C. 422(f)(A)) is amended by 

12 striking ‘‘$500,000’’ and inserting ‘‘$550,000’’. 

13 SEC. 107. USE OF FEDERAL SUPPLY SCHEDULES BY STATE 

14 AND LOCAL GOVERNMENTS FOR GOODS AND 

15 SERVICES FOR DEFENSE AGAINST OR RECOV16 ERY FROM TERRORISM OR NUCLEAR, BIO17 LOGICAL, CHEMICAL, OR RADIOLOGICAL AT18 TACK. 

19 (a) AUTHORITY TO USE SUPPLY SCHEDULES FOR

20 CERTAIN GOODS AND SERVICES.—Section 502 of title 40, 

21 United States Code, is amended by adding at the end the 

22 following new subsection: 

23 ‘‘(d) USE OF SUPPLY SCHEDULES FOR CERTAIN

24 GOODS AND SERVICES.—

25 ‘‘(1) IN GENERAL.—The Administrator may 

26 provide for the use by State or local governments of 
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•HR 2067 IH 

1 Federal supply schedules of the General Services Ad2 ministration for goods and services that are used to 

3 facilitate defense against or recovery from terrorism 

4 or nuclear, biological, chemical, or radiological at5 tack. 

6 ‘‘(2) DETERMINATION BY SECRETARY OF

7 HOMELAND SECURITY.—The Secretary of Homeland 

8 Security shall determine which goods and services 

9 qualify as goods and services described in paragraph 

10 (1) before the Administrator provides for the use of 

11 the Federal supply schedule relating to such goods 

12 and services. 

13 ‘‘(3) VOLUNTARY USE.—In the case of the use 

14 by a State or local government of a Federal supply 

15 schedule pursuant to paragraph (1), participation by 

16 a firm that sells to the Federal Government through 

17 the supply schedule shall be voluntary with respect 

18 to a sale to the State or local government through 

19 such supply schedule. 

20 ‘‘(4) DEFINITIONS.—The definitions in sub21 section (c)(3) shall apply for purposes of this sec22 tion.’’. 

23 (b) PROCEDURES.—Not later than 30 days after the 

24 date of the enactment of this Act, the Administrator of 

25 General Services shall establish procedures to implement 
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•HR 2067 IH 

1 section 502(d) of title 40, United States Code (as added 

2 by subsection (a). 

3 SEC. 108. UNIFORM PAYMENT STANDARDS FOR CONTRACT 

4 FINANCING. 

5 (a) REVISION OF FEDERAL ACQUISITION REGULA6 TION.—Not later than 180 days after the date of the en7 actment of this Act, the Federal Acquisition Regulation 

8 shall be revised to establish payment terms for contract 

9 financing payments that are not otherwise subject to other 

10 laws governing payment terms. The revisions shall provide 

11 that—

12 (1) all contract financing payments be made by 

13 the agency concerned as quickly as practicable; 

14 (2) to the maximum extent practicable, contract 

15 financing payments be made within 14 days after re16 ceipt and approval of an invoice by a government of17 ficial; and 

18 (3) in determining the appropriate payment 

19 terms for a contract, an agency should consider—

20 (A) geographical separation; 

21 (B) workload; 

22 (C) contractor ability to submit a proper 

23 request for payment; and 

24 (D) other factors that could affect timing 

25 of payment. 
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1 (b) DEFINITIONS.—In this section: 

2 (1) FEDERAL ACQUISITION REGULATION.—The 

3 term ‘‘Federal Acquisition Regulation’’ means the 

4 single Government-wide procurement regulation 

5 issued in accordance with sections 6 and 25 of the 

6 Office of Federal Procurement Policy Act (41 U.S.C. 

7 405 and 421). 

8 (2) CONTRACT FINANCING PAYMENT.—The 

9 term ‘‘contract financing payment’’—

10 (A) means an authorized Government dis11 bursement of monies to a contractor before ac12 ceptance of supplies or services by the Govern13 ment; 

14 (B) includes—

15 (i) advance payments; 

16 (ii) performance-based payments; 

17 (iii) commercial advance and interim 

18 payments; 

19 (iv) progress payments based on cost; 

20 (v) progress payments based on a per21 centage or state of completion; and 

22 (vi) interim payments under a cost re23 imbursement contract; and 

24 (C) does not include—

25 (i) invoice payments; 
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1 (ii) payments for partial deliveries; or 

2 (iii) lease and rental payments. 

3 TITLE II—CONTRACT DISPUTE 

4 ENHANCEMENT 

5 Subtitle A—General Provisions 

6 SEC. 211. DEFINITIONS. 

7 (a) IN GENERAL.—The Office of Federal Procure8 ment Policy Act (41 U.S.C. 401 et seq.) is amended by 

9 adding at the end the following: 

10 ‘‘TITLE II—DISPUTE 

11 RESOLUTION 

12 ‘‘Subtitle A—General Provisions 

13 ‘‘SEC. 201. DEFINITIONS. 

14 ‘‘In this title: 

15 ‘‘(1) The term ‘Defense Board’ means the De16 partment of Defense Board of Contract Appeals es17 tablished pursuant to section 8(a)(1) of the Contract 

18 Disputes Act of 1978 (41 U.S.C. 607). 

19 ‘‘(2) The term ‘Civilian Board’ means the Civil20 ian Board of Contract Appeals established pursuant 

21 to section 8(b)(1) of the Contract Disputes Act of 

22 1978 (41 U.S.C. 607). 

23 ‘‘(3) The term ‘Board judge’ means a member 

24 of the Defense Board or the Civilian Board, as the 

25 case may be. 
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•HR 2067 IH 

1 ‘‘(4) The term ‘Chairman’ means the Chairman 

2 of the Defense Board or the Civilian Board, as the 

3 case may be. 

4 ‘‘(5) The term ‘Board concerned’ means—

5 ‘‘(A) the Defense Board with respect to 

6 matters within its jurisdiction; and 

7 ‘‘(B) the Civilian Board with respect to 

8 matters within its jurisdiction. 

9 ‘‘(6) The term ‘executive agency’—

10 ‘‘(A) with respect to contract disputes 

11 under the jurisdiction of the Defense Board, 

12 means the Department of Defense, the Depart13 ment of the Army, the Department of the Navy, 

14 the Department of the Air Force, or the Na15 tional Aeronautics and Space Administration; 

16 and 

17 ‘‘(B) with respect to contract disputes 

18 under the jurisdiction of the Civilian Board, has 

19 the meaning given by section 4(1) of this Act 

20 except that the term does not include the De21 partment of Defense, the Department of the 

22 Army, the Department of the Navy, the Depart23 ment of the Air Force, the National Aero24 nautics and Space Administration, and the Ten25 nessee Valley Authority.’’. 
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1 (b) CONFORMING AMENDMENTS.—The Office of 

2 Federal Procurement Policy Act (41 U.S.C. 401 et seq.) 

3 is further amended—

4 (1) by inserting the following before section 1: 

5 ‘‘TITLE I—FEDERAL PROCURE6 MENT POLICY GENERALLY’’

; 

7 and 

8 (2) in section 4, by striking out ‘‘As used in 

9 this Act:’’ and inserting in lieu thereof ‘‘Except as 

10 otherwise specifically provided, as used in this Act:’’. 

11 Subtitle B—Establishment of Civil12 ian and Defense Boards of Con13 tract Appeals 

14 SEC. 221. ESTABLISHMENT. 

15 (a) DEFENSE BOARD.—Subsection (a)(1) of section 

16 8 of the Contract Disputes Act of 1978 (41 U.S.C. 607) 

17 is amended to read as follows: 

18 ‘‘(a)(1) There is established in the Department of De19 fense a board of contract appeals to be known as the De20 partment of Defense Board of Contract Appeals.’’. 

21 (b) CIVILIAN BOARD.—Subsection (b)(1) of section 

22 8 of the Contract Disputes Act of 1978 (41 U.S.C. 607) 

23 is amended to read as follows: 
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1 ‘‘(b)(1) There is established in the General Services 

2 Administration a board of contract appeals to be known 

3 as the Civilian Board of Contract Appeals.’’. 

4 SEC. 222. MEMBERSHIP. 

5 The Office of Federal Procurement Policy Act (41 

6 U.S.C. 401 et seq.), as amended by section 211, is further 

7 amended by adding at the end the following: 

8 ‘‘SEC. 202. MEMBERSHIP. 

9 ‘‘(a) APPOINTMENT.—(1)(A) The Defense Board 

10 shall consist of judges appointed by the Secretary of De11 fense from a register of applicants maintained by the De12 fense Board, in accordance with rules issued by the De13 fense Board for establishing and maintaining a register 

14 of eligible applicants and selecting Defense Board judges. 

15 The Secretary shall appoint a judge without regard to po16 litical affiliation and solely on the basis of the professional 

17 qualifications required to perform the duties and respon18 sibilities of a Defense Board judge. 

19 ‘‘(B) The Civilian Board shall consist of judges ap20 pointed by the Administrator for Federal Procurement 

21 Policy from a register of applicants maintained by the Ad22 ministrator, in accordance with rules issued by the Admin23 istrator for establishing and maintaining a register of eli24 gible applicants and selecting Civilian Board judges. The 

25 Administrator shall appoint a judge without regard to po-
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•HR 2067 IH 

1 litical affiliation and solely on the basis of the professional 

2 qualifications required to perform the duties and respon3 sibilities of a Civilian Board judge. 

4 ‘‘(2) The members of the Defense Board and the Ci5 vilian Board shall be selected and appointed to serve in 

6 the same manner as administrative law judges appointed 

7 pursuant to section 3105 of title 5, United States Code, 

8 with an additional requirement that such members shall 

9 have had not fewer than five years of experience in public 

10 contract law. 

11 ‘‘(3) Notwithstanding paragraph (2) and subject to 

12 subsection (b), the following persons shall serve as Board 

13 judges: 

14 ‘‘(A) For the Defense Board, any full-time 

15 member of the Armed Services Board of Contract 

16 Appeals serving as such on the day before the effec17 tive date of this title. 

18 ‘‘(B) For the Civilian Board, any full-time 

19 member of any agency board of contract appeals 

20 other than the Armed Services Board of Contract 

21 Appeals, the Postal Service Board of Contract Ap22 peals, and the board of contract appeals of the Ten23 nessee Valley Authority serving as such on the day 

24 before the effective date of this title. 
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1 ‘‘(b) REMOVAL.—Members of the Defense Board and 

2 the Civilian Board shall be subject to removal in the same 

3 manner as administrative law judges, as provided in sec4 tion 7521 of title 5, United States Code. 

5 ‘‘(c) COMPENSATION.—Compensation for the Chair6 man of the Defense Board and the Chairman of the Civil7 ian Board and all other members of each Board shall be 

8 determined under section 5372a of title 5, United States 

9 Code.’’. 

10 SEC. 223. CHAIRMEN. 

11 The Office of Federal Procurement Policy Act (41 

12 U.S.C. 401 et seq.), as amended by section 222, is further 

13 amended by adding at the end the following: 

14 ‘‘SEC. 203. CHAIRMEN. 

15 ‘‘(a) DESIGNATION.—(1)(A) The Chairman of the 

16 Defense Board shall be designated by the Secretary of De17 fense to serve for a term of five years. The Secretary shall 

18 select the Chairman from among sitting judges each of 

19 whom has had at least five years of service as a member 

20 of the Armed Services Board of Contract Appeals. 

21 ‘‘(B) The Chairman of the Civilian Board shall be 

22 designated by the Administrator for Federal Procurement 

23 Policy to serve for a term of five years. The Administrator 

24 shall select the Chairman from among sitting judges each 

25 of whom has had at least five years of service as a member 
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•HR 2067 IH 

1 of an agency board of contract appeals other than the 

2 Armed Services Board of Contract Appeals. 

3 ‘‘(2) A Chairman of a Board may continue to serve 

4 after the expiration of the Chairman’s term until a suc5 cessor has taken office. A Chairman may be reappointed 

6 any number of times. 

7 ‘‘(b) RESPONSIBILITIES.—The Chairman of the De8 fense Board or the Civilian Board, as the case may be, 

9 shall be responsible on behalf of the Board for the execu10 tive and administrative operation of the Board, including 

11 functions of the Board with respect to the following: 

12 ‘‘(1) The selection, appointment, and fixing of 

13 the compensation of such personnel, pursuant to 

14 part III of title 5, United States Code, as the Chair15 man considers necessary or appropriate, including a 

16 Clerk of the Board, a General Counsel, and clerical 

17 and legal assistance for Board judges. 

18 ‘‘(2) The supervision of personnel employed by 

19 or assigned to the Board, and the distribution of 

20 work among such personnel. 

21 ‘‘(3) The operation of an Office of the Clerk of 

22 the Board, including the receipt of all filings made 

23 with the Board, the assignment of cases, and the 

24 maintenance of all records of the Board. 
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1 ‘‘(4) The prescription of such rules and regula2 tions as the Chairman considers necessary or appro3 priate for the administration and management of the 

4 Board. 

5 ‘‘(c) VICE CHAIRMEN.—The Chairman of the De6 fense Board or the Civilian Board, as the case may be, 

7 may designate up to two other Board judges as Vice 

8 Chairmen. The Vice Chairmen, in the order designated by 

9 the Chairman, shall act in the place and stead of the 

10 Chairman during the absence of the Chairman.’’. 

11 SEC. 224. RULEMAKING AUTHORITY. 

12 The Office of Federal Procurement Policy Act (41 

13 U.S.C. 401 et seq.), as amended by section 223, is further 

14 amended by adding at the end the following: 

15 ‘‘SEC. 204. RULEMAKING AUTHORITY. 

16 ‘‘Except as provided by section 252 of the Acquisition 

17 System Improvement Act, the Chairman of the Defense 

18 Board and the Chairman of the Civilian Board, in con19 sultation with the Administrator for Federal Procurement 

20 Policy, shall jointly issue and maintain—

21 ‘‘(1) such procedural rules and regulations as 

22 are necessary to the exercise of the functions of the 

23 Boards under section 211; and 

24 ‘‘(2) statements of policy of general applica25 bility with respect to such functions.’’. 
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•HR 2067 IH 

1 SEC. 225. AUTHORIZATION OF APPROPRIATIONS. 

2 The Office of Federal Procurement Policy Act (41 

3 U.S.C. 401 et seq.), as amended by section 224, is further 

4 amended by adding at the end the following: 

5 ‘‘SEC. 205. AUTHORIZATION OF APPROPRIATIONS. 

6 ‘‘There are authorized to be appropriated for fiscal 

7 year 2005 and each succeeding fiscal year such sums as 

8 may be necessary to carry out the provisions of this title. 

9 Funds for the activities of each Board shall be separately 

10 appropriated for such purpose. Funds appropriate pursu11 ant to this section shall remain available until expended.’’. 

12 Subtitle C—Functions of Defense 

13 and Civilian Boards of Contract 

14 Appeals 

15 SEC. 231. CONTRACT DISPUTES. 

16 The Office of Federal Procurement Policy Act (41 

17 U.S.C. 401 et seq.), as amended by section 225, is further 

18 amended by adding at the end the following: 

19 ‘‘Subtitle B—Functions of the De20 fense and Civilian Boards of 

21 Contract Appeals 

22 ‘‘SEC. 211. CONTRACT DISPUTES. 

23 ‘‘The Defense Board shall have jurisdiction as pro24 vided by section 8(a)(1) of the Contract Disputes Act of 

25 1978 (41 U.S.C. 607(a)). The Civilian Board shall have 
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•HR 2067 IH 

1 jurisdiction as provided by section 8(b)(1) of such Act (41 

2 U.S.C. 607(b)).’’. 

3 SEC. 232. ENHANCED ACCESS FOR SMALL BUSINESS. 

4 Section 9(a) of the Contract Disputes Act of 1978 

5 (41 U.S.C. 608) is amended by striking out the period 

6 at the end of the first sentence and inserting the following: 

7 ‘‘or, in the case of a small business concern (as defined 

8 in the Small Business Act and regulations under that 

9 Act), $150,000 or less.’’. 

10 SEC. 233. APPLICABILITY TO CERTAIN CONTRACTS. 

11 The Office of Federal Procurement Policy Act (41 

12 U.S.C. 401 et seq.), as amended by section 231, is further 

13 amended by adding at the end the following: 

14 ‘‘SEC. 212. APPLICABILITY TO CERTAIN CONTRACTS. 

15 ‘‘(a) CONTRACTS AT OR BELOW THE SIMPLIFIED AC16 QUISITION THRESHOLD.—Notwithstanding section 33 of 

17 this Act, the authority conferred on the Defense Board 

18 and the Civilian Board by this title is applicable to con19 tracts in amounts not greater than the simplified acquisi20 tion threshold. 

21 ‘‘(b) CONTRACTS FOR COMMERCIAL ITEMS.—Not22 withstanding section 34 of this Act, the authority con23 ferred on the Defense Board and the Civilian Board by 

24 this title is applicable to contracts for the procurement of 

25 commercial items.’’. 
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•HR 2067 IH 

1 Subtitle D—Transfers and Transi2 tion, Savings, and Conforming 

3 Provisions 

4 SEC. 241. TRANSFER AND ALLOCATION OF APPROPRIA5 TIONS AND PERSONNEL. 

6 (a) TRANSFERS.—

7 (1) ARMED SERVICES BOARD OF CONTRACT AP8 PEALS.—The personnel employed in connection with, 

9 and the assets, liabilities, contracts, property, 

10 records, and unexpended balance of appropriations, 

11 authorizations, allocations, and other funds em12 ployed, held, used, arising from, available to, or to 

13 be made available in connection with the functions 

14 vested by law in the Armed Services Board of Con15 tract Appeals established pursuant to section 8 of 

16 the Contract Disputes Act of 1978 (41 U.S.C. 607) 

17 (as in effect on the day before the effective date de18 scribed in section 251), shall be transferred to the 

19 Department of Defense Board of Contract Appeals 

20 for appropriate allocation by the Chairman of that 

21 Board. 

22 (2) OTHER BOARDS OF CONTRACTS APPEALS.—

23 The personnel employed in connection with, and the 

24 assets, liabilities, contracts, property, records, and 

25 unexpended balance of appropriations, authoriza-
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•HR 2067 IH 

1 tions, allocations, and other funds employed, held, 

2 used, arising from, available to, or to be made avail3 able in connection with the functions vested by law 

4 in the boards of contract appeals established pursu5 ant to section 8 of the Contract Disputes Act of 

6 1978 (41 U.S.C. 607) (as in effect on the day before 

7 the effective date described in section 251) other 

8 than the Armed Services Board of Contract Appeals, 

9 the board of contract appeals of the Tennessee Val10 ley Authority, and the Postal Service Board of Con11 tract Appeals shall be transferred to the Civilian 

12 Board of Contract Appeals for appropriate allocation 

13 by the Chairman of that Board. 

14 (b) EFFECT ON PERSONNEL.—Personnel transferred 

15 pursuant to this subtitle shall not be separated or reduced 

16 in compensation for one year after such transfer, except 

17 for cause. 

18 (c) REGULATIONS.—(1) The Department of Defense 

19 Board of Contract Appeals and the Civilian Board of Con20 tract Appeals shall each prescribe regulations for the re21 lease of competing employees in a reduction in force that 

22 gives due effect to—

23 (A) efficiency or performance ratings; 

24 (B) military preference; and 

25 (C) tenure of employment. 
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1 (2) In prescribing the regulations, the Board con2 cerned shall provide for military preference in the same 

3 manner as set forth in subchapter I of chapter 35 of title 

4 5, United States Code. 

5 SEC. 242. TERMINATIONS AND SAVINGS PROVISIONS. 

6 (a) TERMINATION OF BOARDS OF CONTRACT AP7 PEALS.—Effective on the effective date described in sec8 tion 251, the boards of contract appeals established pursu9 ant to section 8 of the Contract Disputes Act of 1978 (41 

10 U.S.C. 607) (as in effect on the day before such effective 

11 date), other than the board of contract appeals of the Ten12 nessee Valley Authority and the Postal Service Board of 

13 Contract Appeals, shall terminate. 

14 (b) SAVINGS PROVISION FOR CONTRACT DISPUTE

15 MATTERS PENDING BEFORE BOARDS.—(1) This title and 

16 the amendments made by this title shall not affect any 

17 proceedings pending on the effective date described in sec18 tion 251 before any board of contract appeals terminated 

19 by subsection (a). 

20 (2) In the case of any such proceedings pending be21 fore the Armed Services Board of Contract Appeals, the 

22 proceedings shall be continued by the Department of De23 fense Board of Contract Appeals, and orders which were 

24 issued in any such proceeding by the Armed Services 

25 Board of Contract Appeals shall continue in effect until 
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1 modified, terminated, superseded, or revoked by the De2 partment of Defense Board of Contract Appeals, by a 

3 court of competent jurisdiction, or by operation of law. 

4 (3) In the case of any such proceedings pending be5 fore an agency board of contract appeals other than the 

6 Armed Services Board of Contract Appeals or the board 

7 of contract appeals of the Tennessee Valley Authority, the 

8 proceedings shall be continued by the Civilian Board of 

9 Contract Appeals, and orders which were issued in any 

10 such proceeding by the agency board shall continue in ef11 fect until modified, terminated, superseded, or revoked by 

12 the Civilian Board of Contract Appeals, by a court of com13 petent jurisdiction, or by operation of law. 

14 SEC. 243. CONTRACT DISPUTES AUTHORITY OF BOARDS. 

15 (a) Section 2 of the Contract Disputes Act of 1978 

16 (41 U.S.C. 601) is amended—

17 (1) in paragraph (2), by striking out ‘‘, the 

18 United States Postal Service, and the Postal Rate 

19 Commission’’; 

20 (2) by redesignating paragraph (7) as para21 graph (9); 

22 (3) by amending paragraph (6) to read as fol23 lows: 

24 ‘‘(6) the terms ‘agency board’ or ‘agency board 

25 of contract appeals’ mean—
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1 ‘‘(1) the Department of Defense Board of 

2 Contract Appeals established under section 

3 8(a)(1) of this Act; 

4 ‘‘(2) the Civilian Board of Contract Ap5 peals established under section 8(b)(1) of this 

6 Act; 

7 ‘‘(3) the board of contract appeals of the 

8 Tennessee Valley Authority; or 

9 ‘‘(4) the Postal Service Board of Contract 

10 Appeals established under section 8(h) of this 

11 Act;’’; and 

12 (4) by inserting after paragraph (6) the fol13 lowing new paragraphs: 

14 ‘‘(7) the term ‘Defense Board’ means the De15 partment of Defense Board of Contract Appeals es16 tablished under section 8(a)(1) of this Act; 

17 ‘‘(8) the term ‘Civilian Board’ means the Civil18 ian Board of Contract Appeals established under 

19 section 8(b)(1) of this Act; and’’. 

20 (b) Section 8 of the Contract Disputes Act of 1978 

21 (41 U.S.C. 607), as amended by section 221, is further 

22 amended—

23 (1) by striking out subsection (c); 

24 (2) in subsection (d)—
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•HR 2067 IH 

1 (A) by striking out the first sentence and 

2 inserting in lieu thereof the following: ‘‘The De3 fense Board shall have jurisdiction to decide 

4 any appeal from a decision of a contracting offi5 cer of the Department of Defense, the Depart6 ment of the Army, the Department of the Navy, 

7 the Department of the Air Force, or the Na8 tional Aeronautics and Space Administration 

9 relative to a contract made by that department 

10 or agency. The Civilian Board shall have juris11 diction to decide any appeal from a decision of 

12 a contracting officer of any executive agency 

13 (other than the Department of Defense, the De14 partment of the Army, the Department of the 

15 Navy, the Department of the Air Force, the 

16 National Aeronautics and Space Administra17 tion, the United States Postal Service, the Post18 al Rate Commission, or the Tennessee Valley 

19 Authority) relative to a contract made by that 

20 agency. Each other agency board shall have ju21 risdiction to decide any appeal from a decision 

22 of a contracting officer relative to a contract 

23 made by its agency.’’; and 
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•HR 2067 IH 

1 (B) in the second sentence, by striking out 

2 ‘‘Claims Court’’ and inserting in lieu thereof 

3 ‘‘Court of Federal Claims’’; 

4 (3) by striking out subsection (h) and inserting 

5 in lieu thereof the following: 

6 ‘‘(h) There is established an agency board of contract 

7 appeals to be known as the ‘Postal Service Board of Con8 tract Appeals’. Such board shall have jurisdiction to decide 

9 any appeal from a decision of a contracting officer of the 

10 United States Postal Service or the Postal Rate Commis11 sion relative to a contract made by either agency. Such 

12 board shall consist of judges appointed by the Postmaster 

13 General who shall meet the qualifications of and serve in 

14 the same manner as judges of the Civilian Board of Con15 tract Appeals. This Act and title II of the Office of Fed16 eral Procurement Policy Act shall apply to contract dis17 putes before the Postal Service Board of Contract Appeals 

18 in the same manner as they apply to contract disputes 

19 before the Civilian Board.’’; and 

20 (4) by striking out subsection (i). 

21 SEC. 244. REFERENCES TO AGENCY BOARDS OF CONTRACT 

22 APPEALS. 

23 (a) DEFENSE BOARD.—Any reference to the Armed 

24 Services Board of Contract Appeals in any provision of 

25 law or in any rule, regulation, or other paper of the United 
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1 States shall be treated as referring to the Department of 

2 Defense Board of Contract Appeals. 

3 (b) CIVILIAN BOARD.—Any reference to an agency 

4 board of contract appeals other than the Armed Services 

5 Board of Contract Appeals, the board of contract appeals 

6 of the Tennessee Valley Authority, or the Postal Service 

7 Board of Contract Appeals in any provision of law or in 

8 any rule, regulation, or other paper of the United States 

9 shall be treated as referring to the Civilian Board of Con10 tract Appeals. 

11 SEC. 245. CONFORMING AMENDMENTS. 

12 (a) TITLE 5.—Section 5372a(a)(1) of title 5, United 

13 States Code, is amended by inserting after ‘‘of 1978’’ the 

14 following: ‘‘or a member of the Department of Defense 

15 Board of Contract Appeals or the Civilian Board of Con16 tract Appeals appointed under section 202 of the Office 

17 of Federal Procurement Policy Act’’. 

18 (b) OFFICE OF FEDERAL PROCUREMENT POLICY

19 ACT.—The table of contents for the Office of Federal Pro20 curement Policy Act (contained in section 1(b)) is amend21 ed—

22 (1) by inserting the following before the item 

23 relating to section 1:

‘‘TITLE I—FEDERAL PROCUREMENT POLICY GENERALLY’’;

24 and 

25 (2) by adding at the end the following:
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‘‘TITLE II—DISPUTE RESOLUTION 

‘‘Subtitle A—General Provisions 

‘‘201. Definitions. 

‘‘202. Membership. 

‘‘203. Chairmen. 

‘‘204. Rulemaking authority. 

‘‘205. Authorization of appropriations. 

‘‘Subtitle B—Functions of the Defense and Civilian Boards of Contract 

Appeals 

‘‘211. Contract disputes. 

‘‘212. Applicability to certain contracts.’’.

1 Subtitle E—Effective Date; Regula2 tions and Appointment of Chair3 men 

4 SEC. 251. EFFECTIVE DATE. 

5 Title II of the Office of Federal Procurement Policy 

6 Act, as added by this title, and the amendments and re7 peals made by this title shall take effect 1 year after the 

8 date of the enactment of this Act. 

9 SEC. 252. REGULATIONS. 

10 (a) REGULATIONS REGARDING CLAIMS.—Not later 

11 than 1 year after the date of the enactment of this Act, 

12 the Chairman of the Armed Services Board of Contract 

13 Appeals and the Chairman of the General Services Board 

14 of Contract Appeals, in consultation with the Adminis15 trator for Federal Procurement Policy, shall jointly 

16 issue—

17 (1) such procedural rules and regulations as are 

18 necessary to the exercise of the functions of the De19 partment of Defense Board of Contract Appeals and 
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1 the Civilian Board of Contract Appeals under sec2 tions 211 of the Office of Federal Procurement Pol3 icy Act (as added by this title); and 

4 (2) statements of policy of general applicability 

5 with respect to such functions. 

6 (b) REGULATIONS REGARDING APPOINTMENT OF

7 JUDGES.—Not later than 1 year after the date of the en8 actment of this Act—

9 (1) the Chairman of the Armed Services Board 

10 of Contract Appeals shall issue rules governing the 

11 establishment and maintenance of a register of eligi12 ble applicants and the selection of judges for the De13 partment of Defense Board of Contract Appeals; 

14 and 

15 (2) the Administrator for Federal Procurement 

16 Policy shall issue rules governing the establishment 

17 and maintenance of a register of eligible applicants 

18 and the selection of judges for the Civilian Board of 

19 Contract Appeals. 

20 SEC. 253. APPOINTMENT OF CHAIRMEN OF DEFENSE 

21 BOARD AND CIVILIAN BOARD. 

22 Notwithstanding section 251, not later than 1 year 

23 after the date of the enactment of this Act—
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1 (1) the Secretary of Defense shall appoint the 

2 Chairman of the Department of Defense Board of 

3 Contract Appeals; and 

4 (2) the Administrator for Federal Procurement 

5 Policy shall appoint the Chairman of the Civilian 

6 Board of Contract Appeals.

Æ